European markets slide after German ban on short-selling

European markets fell late Thursday morning over fears that other EU countries may follow suit on Germany's short-selling ban.

Thanassis Stavrakis/AP
A woman hangs a European Union flag at the residence of the Spanish Ambassador in Athens, Wednesday. World markets slid Wednesday while the euro hovered near four-year lows against the dollar after Germany announced new curbs on traders, including a ban on short-selling some kinds of shares, in a unilateral attempt to shore up the ailing euro and prevent the continent's debt crisis from getting out of control.

European stocks fell late on Thursday morning on persistent concerns that other European countries may follow Germany's footsteps to ban short-selling in some financial instruments, traders said.

"There is a rumour of the short selling ban being extended in the euro zone," a trader said.

However, French Economy Minister Christine Lagarde confirmed earlier that France would not be following a German move to ban the naked short-selling of sovereign debt.

German government bonds turned positive as stocks fell, with the June Bund futures FGBLc1 up 9 ticks on the day at 127.56, while cash yields fell.

At 1054 GMT, the FTSEurofirst 300 .FTEU3 index of top European shares was down 0.6 percent at 990.81 points.


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